Business location

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For some decades now, economic research has been associating the term business location with those parameters that are supposed to have a positive or negative effect on economic growth . Location factors are understood to be the totality of all factors that a company takes into account when choosing its location or business location.

Factors that have a positive effect on long-term economic growth are continuous institutional framework conditions such as legal security (independent and effective courts, contract and register security , prevention of corruption and money laundering ), public security and research .

Also, low corporate taxes (controversial), cyclical monetary policy , a stable price level (see inflation rate ), "openness" of the labor market (controversial in detail) and good training of potential workers, as well as "optimal" state regulation should promote economic growth. However, to what extent social policy can also have a business-friendly effect, the opinions of the various economics schools differ. Regardless of this, a broader distribution of national wealth is mostly viewed positively and the opposite is viewed as a stumbling block for developing countries .

While the "pure" supply policy gives priority to the aspects mentioned at the beginning, there are various mixed forms of social , societal and economic policy in political practice . Various concepts contribute to this, some of which contradict the above and in fact complement it. They come from the principles

  1. the responsibility of the individual,
  2. of Catholic social teaching ,
  3. the social democratic and / or
  4. the desired sustainability , reinforced by goals of environmental protection .

The Fraunhofer-Gesellschaft's model , which aims to promote medium- sized companies , strives for a certain compromise . In order to secure Germany as a business location and to improve the labor market , the FhG emphasizes cooperation with medium- sized companies in terms of research and development, which cannot afford their own research laboratories. The focus is on the importance of innovative ideas, which in large companies usually take longer to implement than in small and medium-sized companies .

See also

Individual evidence

  1. Easterly, William (2005), "National policies and economic growth: A reappraisal", in: Philippe Aghion Steven Durlauf (eds.), Handbook of Economic Growth, Elsevier, ch. 15; "National policies and economic growth: A reappraisal", in: Philippe Aghion, Steven Durlauf (eds.), Handbook of Economic Growth, Elsevier, ch. 15; Hall, Jones "Why do some countries produce so much output per workers than others?" in The Quarterly Journal of Economics (1999), vol. 114, No 456, pp. 83-116.